Pence Is Said to Lead U.S.-Brazil Talks on Rocket Launch Site

(Bloomberg) — Talks over U.S. commercial use of a rocket launch site in Brazil are advancing and will take center stage during Vice President Mike Pence’s visit to Brasilia next week, according to three people familiar with the matter.

While a final agreement is unlikely during his visit, progress has been made in discussions to give U.S. personnel access to the Alcantara base in the northeastern state of Maranhao, while ensuring sovereignty safeguards to Brazil. Both sides have made concessions and things are moving forward in a positive way, the people said, asking not to be named because talks aren’t public. Discussions are now focused on the financial end of the deal and on transfer of technology, they added.

Pence will meet with Brazilian President Michel Temer on Tuesday in the capital Brasilia, according to a statement from the U.S. embassy.

Alcantara’s proximity to the equator makes it cheaper to launch rockets. The base could generate revenue of up to $1.5 billion, according to the Brazilian defense ministry. All previous attempts at commercially exploring the base have failed. In 2015 Brazil ended a partnership with Ukraine to develop a launch vehicle at Alcantara, citing Ukraine’s financial problems. A previous cooperation with the U.S. was rejected by Congress for alleged national sovereignty violations.

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